The emergency situation was declared at 8:30 am and officers have established an exclusion zone bounded by Sarina Beach Road, Crichton Street and Ferries Terrace.

One local said heavily armed police were swarming the area.

"Some of the officers were wearing bullet proof vests in the car park of the motel as well as at the roadblocks. All access to roads around the motel and the boat ramp were blocked off by police. I believe it is still currently ongoing," the local man told the Daily Mercury.